Video Rental - Market Research on the cheap - Comments welcome

KinchTheBlade · 05-07-2004 07:37PM #1

Hi All
Apologies if this is out of order but yah don't ask yah don't get...

My friend and I are major film buffs, are pissed off with the Xtravisions of this world and are considering opening a new DVD library.

However I'm conscious of the fact that being a film enthusiast doen't mean I'll get the shop right in terms of what it offers.

We plan on renting cheaper than the big boys - what's a fair price for new releases and for stuff that let's say more than 6 weeks old

So I guess I'm asking for opinions....
Any general suggestions,
The right balance of titles,
pet hates,
good potential locations ( you might pm me that one ;-))
opening hours.
Anything that people can add really is helpful and saves us on the market research rip off

Thanks a mill for any comments you can offer

Kinch the Knifeblade

Spunog UIE · 05-07-2004 11:24PM

http://www.dvdrentals.ie/

thought there were more but didn't pop up when i did a quick search.

I haven't rented a film or game in years, 5+ i'd say (infact my local video rental shop closed down last year and has been open for 20+ yrs at least, long before my time) it was ages before i had even noticed it was permanently closed. I don't know how they stay up.

I go to the cinema for most new films that I think will be good. I buy the odd dvd from play.com and a whole lot of others. My friends buy a lot of dvds too so get to see most things. Dvds of series seem to be the most common now, Family Guy et all. And then of course theres the magic that broadband provides that Ireland is begining to enjoy. And blast that damn sky digital rip off that caters to my very rare impluse buys, just so handy and instant.

Maybe I'm the only one but I think renting films is dead in the water. Then again, the people doing it now are still here, some at least.

Sleepy · 06-07-2004 11:10AM

Have a look at Lazer on Georges Street. Best video shop I've ever seen.

dudara · 06-07-2004 11:18AM

I only rent DVDs when Pigsback and Xtravision run a new rental for half price promotion. otherwise I think that it's just not worth it

Evil_Bilbo · 06-07-2004 12:46PM

At a fiver for a new release, I rarely rent anymore. That said, you'll have to decide whether you want to make the big bucks, or you want to cater for "movie buffs" and their tastes.

If you look in any Xtravision magazine, you will see the biggest "sellers" (in the rental charts) are the newest blockbusters to come out each month. At a fiver a pop, they really must be making more money off the top 20 say, than all their oldies put together.

Still - if you DO stock loads of copies of the latest new releases, you'll be competing directly with all the main dvd stores, and so will have to dramatically lower your prices compared to theirs.

One thing that REALLY pisses me off about xtravision is the way once something is a new release, it stays the same price (and in the new release section) for AGES. For example, the Two Towers is still 4.75, and is STILL in the new release section. Its been out for almost year dammit. When are they going to drop the price? Sly b@stards.

I'd recommend Laser in Georges St to anyone who loves their movies, though its not very well laid out (wasnt a coupla years ago when I was a member anyway) ie its very hard to pick something out by just reading the "spines" of over 100 videos/dvds. A good layout where everything is clearly on view is essential.

I'd highly recommend stocking a few select titles from the mainstream blockbuster type movie (at about 3 or 4 euro - just to cater for joe public), and apart from that, just to stock indie / cult / stuff that movie buffs would like, and stuff that joe public would recognise (eg 80s stuff). I'd also recommend having the option to rent box sets. It pisses me off the way you cant rent most tv series (simpsons / a-team / family guy / twin peaks / knight rider etc) or any boxsets like the extended lord of the rings series / godfather trilogies / music dvds etc etc. You HAVE to buy them if you want to see them.

Its also a good idea to have special offers - I know the old chartbusters 3 vids for 3 nights for fiver deal got plenty of business from me (and practically all students in dublin). Advance Vision in rathmines do some good deals, but the shop is so badly organised its impossible to find what you want.

well - hope my rant wasnt too long, and I hope some of the advice was useful. The best of look with the venture anyway - be sure and post a thread if you get it up and running - I'd definitely be interested in becoming a member.

Slutmonkey57b · 06-07-2004 12:53PM

I agree with the "rentals are dead in the water" sentiment - when a one night rental costs €5 and your own copy can be picked up for €15, who on earth would rent?

One thing always annoyed me about video shops is the vetting procedure - you have to produce more documentation to rent a video than you do to rent a ******* car! Ridiculous.

fractal · 06-07-2004 01:02PM

Im an X***-V***** employee! Aint I great!

Couple of things I would say to you.. As an educated guess I'd say on any given week the top 20DVD's make up more than 1/2 the rental throughput of the whole shop, probably closer to 3/4.(or at least thats the way it seems)

A new release i think has a guide price of EUR25 to be bought in (at least that the maximum fine charged for overdues) So five 1night rentals will cover the cost of buying in a new release.

Finally. You have to take into account the customers will rob my DVDs problem.. As a guideline where I work is owed over 30grand in fines/stolen DVD's over the past 2 years.

best of luck setting up your shop!

LoneGunM@n · 06-07-2004 01:03PM

Of all the video shops I've used, Laser in Ranelagh would have to be the best so far ... I find most of the video shops around only carry the new movies out, with very little in the way of obscure or old movies ... Laser has a great selection of both as well as the normal run of the mill choice!!

dahamsta · 06-07-2004 01:11PM

Originally posted by Evil_Bilbo
Still - if you DO stock loads of copies of the latest new releases, you'll be competing directly with all the main dvd stores, and so will have to dramatically lower your prices compared to theirs.

Doesn't matter, he won't be able to stock them anyway. Most of the blockbusters these days are exclusive to a chain, and best intentions don't count for much when you're bidding against a monster.

adam

RE*AC*TOR · 06-07-2004 01:27PM

Originally posted by LoneGunM@n
Of all the video shops I've used, Laser in Ranelagh would have to be the best so far ... I find most of the video shops around only carry the new movies out, with very little in the way of obscure or old movies ... Laser has a great selection of both as well as the normal run of the mill choice!!

ditto - super video shop. enquire about franchise opportunities with them. they know how to run a video shop...
(or go work for them for 6 months and steal all their secrets).

jor el · 06-07-2004 01:48PM

There's a Spar shop here in Limerick, on the Church road, just set up a frachise with Movie Bank, http://www.mb24.co.uk
This is a great idea, you pick the movie you want wither online or from one of the machines in the shop, then you go to the dispencer and collect it. Simple and cheep. If you bring back the DVD within 6 hours you only pay €1.20 or €1.50 for it. The price goes up then with time but even at 24 hours it's only about €4, or less I think. Only drawback I can see is you need to load money in advance, but this can be €10 or €20 wich isn't much, it then uses your credit as you rent.

Sleepy · 06-07-2004 02:02PM

One thing I always liked about NVL in Galway was the way they had every "Best Picture" and "Best Director" movie in the one section organised in chronological order...

small touch but it impressed me.

KinchTheBlade · 06-07-2004 08:18PM

2nd attempt to post - if duplicate please ignore

Thanks you all for your comments. You can bet we'll be cheaper the the big boys and the lifespan for top price dvd's will be a lot shorter before they come down in price - it makes me laugh to see (let's say) Adaptation still for rent at 4.75 - criminal

Anyway please keep up the comments - all grist to the mill etc

Cheers

Kinch

Serbian · 06-07-2004 08:56PM

Originally posted by LoneGunM@n
I find most of the video shops around only carry the new movies out, with very little in the way of obscure or old movies

Just about above, you have to remember that obscure movies, by their very nature, are not very well known, therefore not rented very often. Xtra-Vision and Blockbuster are just cash cows looking for the quick buck with no real regard for or passion about movies. It's unlikely they would 'waste' shelf space with movies that are unlikely to generate much business for them.

Anyway, as a comparison, Donny Darko is currently €4.99 to buy in HMV, €4.75 to rent in my local Xtra-Vision...

gogo · 06-07-2004 09:31PM

Originally posted by fractal

A new release i think has a guide price of EUR25 to be bought in (at least that the maximum fine charged for overdues) So five 1night rentals will cover the cost of buying in a new release.

Sorry to burst your bubble lads, but....

EUR25 for a new release is just not true.

You can't just rent any old dvd, they have to be dvd's that have rental consent,
"if in doubt contact the federation against copyright theft"
A new rental costs in the region of EUR140, so it will take a lot more than five nights rental to cover it.
As a movie buff, you have probably read the crap in blue at the start of a film, well this states the the film must be for home viewing only, or if you have rented it, it would say for rental purposes only. yada yada yada.
If dvd's were so cheap to buy and then rent, places like X*** V***** wouldn't be making so much money, we would all rent from at our local video shop, but the problem is that our local video shop just can't afford to buy in five or six copies of a new release at 140 eur each.

You could take a chance on renting dvd's that you purchased for 4.99 at HMV, but all it takes is one narky fcuker that rents it off you to report you and the F.A.C.T people don't take to kindly to it. Punishments include rather large fines, closure, and confiscation of your rentals. (How many people/strangers could you take a chance on not squealing on you)

Prime Example.
My own local is closing down purely to the fact that they can't afford two or three copies of a new release.

Check out the facts before you open. I will get the name of where you can purchase dvd's for rental of my friend, and post it here.

gogo

nlgbbbblth · 06-07-2004 09:40PM

I rent films about once a year; goto cinema about once a month

buy on average 1 DVD per week.

any other films I want I tape off TV - with Digital Movie Channels/Film Four you can get most things. Have acquired over 1000 movies in this fashion over the last 10 years

in the past I rented like mad but not much nowadays

Tusky · 06-07-2004 09:48PM

-You need to stock old films !
-You should do deals like lazer for example . 3 dvds for 3 nights 9 euro or 6 dvds for a week 18 euro ETC.
-Open Late

sceptre · 06-07-2004 10:50PM

Originally posted by jor el
There's a Spar shop here in Limerick, on the Church road, just set up a frachise with Movie Bank, http://www.mb24.co.uk
This is a great idea, you pick the movie you want wither online or from one of the machines in the shop, then you go to the dispencer and collect it. Simple and cheep. If you bring back the DVD within 6 hours you only pay €1.20 or €1.50 for it. The price goes up then with time but even at 24 hours it's only about €4, or less I think. Only drawback I can see is you need to load money in advance, but this can be €10 or €20 wich isn't much, it then uses your credit as you rent.

Sounds interesting. Where is the Church Road (I'm getting an asp error on the site)?
(living in the middle of Limerick, I've four big churches within 100 yards and I'll bet none of them are on Church Road)

Boy Gorgeous · 07-07-2004 11:32AM

My local video shop rents all videos including new releases for €2 a night. All DVD's €3 per night. Obviously doesn't have as big a selection as Xtra Vision, but gets at least 1 copy of most new releases.

jor el · 07-07-2004 12:26PM

Originally posted by sceptre
Sounds interesting. Where is the Church Road (I'm getting an asp error on the site)?
(living in the middle of Limerick, I've four big churches within 100 yards and I'll bet none of them are on Church Road)

Church Road, Raheen, it's in the Spar in Ballycummin Village, in front of Clohesseys pub down there.

KinchTheBlade · 07-07-2004 12:32PM

Hi all
Thanks again for feedback.
With regard to the machine in Limerick - is it doing well? How many copies of new releases does it have?

With regard to the shop with only 1 copy of a new release at 3 euro - are people generally willing to wait for their turn to get it at 3 instead of 4.75 or do you think they would rather pay 4.75 and get it now?

Theoretically, if we had something like a mobile DVD library ie a big truck and it came round to your place of work and was there for lets say two hours, and it was there again the next day for you to drop them back would that be preferable to having to go to the video shop once you get home from work.

thanks

Kinch

jor el · 07-07-2004 01:06PM

I think the moviebank is doing pretty well. I haven't rented for a few weeks now, but it seems to have quite a few copies of new DVDs in it, Mystic River was the last one I got out.
The mobile library is a good idea, but you're relying on people to bring back in their rental the following day, I can see a lot of people forgetting this, whereas at home you'll see it at some point and bring it back. Plus it wouldn't work at weekends, when most people want to rent, unless you give it to them on Friday and they don't return it till Monday.

gogo · 07-07-2004 03:01PM

There used to be a mobile video 'van' in my town you would rent any five video's at a fixed rate and you could keep them for week. he used to drive to most houses every week, and we'd pick and the following week he'd collect them. You could also book ny new releases from him and he have them for you the following week, if he did'nt have them then. It actually worked really well.
Although you'd need someone who knew the area, as it worked on word of mouth
"mrs robinson up the road wants video's this week" and the like.

Although you could advertise and say you woul be in town square on such a date and will be there at the same time the next week?

KinchTheBlade · 07-07-2004 03:27PM

Interesting comments - the way I feel is that once I get home I hate having to go out again to bring it back - if I could bring it in to work and drop it off then no biggie. The weekend thig is an issue because I guess weekends are the busiest time for rentals.

Seems like all the responses here so far add up to DVD rentals are dead except for old movies but everybody else I speak to tells me that the only dvd rentals are new release rentals.

The problem with information is that it often ruins a perfectly good plan with a dose of reality.

Cheers

Kinch

KinchTheBlade · 07-07-2004 03:50PM

Interesting comments - the way I feel is that once I get home I hate having to go out again to bring it back - if I could bring it in to work and drop it off then no biggie. The weekend thig is an issue because I guess weekends are the busiest time for rentals.

Seems like all the responses here so far add up to DVD rentals are dead except for old movies but everybody else I speak to tells me that the only dvd rentals are new release rentals.

The problem with information is that it often ruins a perfectly good plan with a dose of reality.

Cheers

Kinch

koshaku · 09-01-2005 11:32AM

gogo wrote:

Sorry to burst your bubble lads, but....

EUR25 for a new release is just not true.

You can't just rent any old dvd, they have to be dvd's that have rental consent,
"if in doubt contact the federation against copyright theft"
A new rental costs in the region of EUR140, so it will take a lot more than five nights rental to cover it.
As a movie buff, you have probably read the crap in blue at the start of a film, well this states the the film must be for home viewing only, or if you have rented it, it would say for rental purposes only. yada yada yada.
If dvd's were so cheap to buy and then rent, places like X*** V***** wouldn't be making so much money, we would all rent from at our local video shop, but the problem is that our local video shop just can't afford to buy in five or six copies of a new release at 140 eur each.

You could take a chance on renting dvd's that you purchased for 4.99 at HMV, but all it takes is one narky fcuker that rents it off you to report you and the F.A.C.T people don't take to kindly to it. Punishments include rather large fines, closure, and confiscation of your rentals. (How many people/strangers could you take a chance on not squealing on you)

Prime Example.
My own local is closing down purely to the fact that they can't afford two or three copies of a new release.

Check out the facts before you open. I will get the name of where you can purchase dvd's for rental of my friend, and post it here.

gogo

I am planning to set up a new DVD rental store. Could I get the name/contact details of where you can purchase dvd's for rental?

alleepally · 09-01-2005 01:02PM

I was going to mention the Kiosk solution and someone has posted the link to the Moveibank concept. I reckon you're going to see more of those pop into convenience stores. Even McDonalds in the US are doing video rentals

http://www.usatoday.com/money/industries/retail/2004-05-23-mcdvd_x.htm

If I were you I'd look at the company (http://www.dvdplay.net/)providing this to McD's and then look for target locations here, college campuses for example.

If you want to work on the shop idea I think you'll have to come up with something unique or an added extra that no one else offers. Rent is the killer when it comes to running a shop, along with wages, rates, electricity and insurance. The vending machine solution cuts most of that out.

So, what's you unique selling point? What can you offer that no one else dooes? Those are the 2 questions that you need to determine.

Some suggestions:

Add on to the rental business. Offer a free ads board for customers where they can do swaps with other customers.

A dvd purchase service . YOu buy customers old dvd at a certain price and the dvd is then sold in a special section. Gameshop do something like this - check into that area more.. They are very successful with this concept in games.

Stickiness - give a reason for the customer to be loyal to you rather than any other rental outlet. A mag with their reviews and comments/notification of release dates etc.

A delivery service. Customer can ring up and if it's within a certain radius the movie is brought to them for an extra fee.

Good luck with it anyway and hope you do well.

koshaku · 09-01-2005 01:26PM

Thanks for the kiosk information and recent developments in the marketplace. I would like to get some contact details of wholesalers/distributors of DVD rental movies where I can purchase them and then provide my customers with New Release DVD movies for rent.

Gummy Panda · 09-01-2005 03:20PM

I'd recommend not bothering at all cause rental products are planned to be phased out within 5 years by all the major film studio's. That is why xtra-vision is selling alot of retail now as it is making the move from core rental to core retail.

As soon as you have overcome first years loses and established yourself, you'll be closing down.

alleepally · 09-01-2005 04:09PM

clownboy wrote:

I'd recommend not bothering at all cause rental products are planned to be phased out within 5 years by all the major film studio's. That is why xtra-vision is selling alot of retail now as it is making the move from core rental to core retail.

As soon as you have overcome first years loses and established yourself, you'll be closing down.

Looking at my local Xtravision store, there certainly is at least 50% or more of the floorspace dedicated to retail sales. Haven't read anything specifically to say the movie studios are pahsing it out but if you had a link I'd like to read it anyway.

To the original poster. Here's an idea for you. Get your shop outlet, do some retail sales and rentals but have 4 or 5 dedicated rooms with massive screens and the best audio systems and comfy seats. You then rent the rooms to watch the latest DVD releases. Most people can't afford the equipment to get the best from their dvd viewing..

Here's a press release you can keep for when you launch it. I will expect a cut of your profits of course!

The DVD Experience - a movie lovers dream
===============
Press Release
Dublin, Ireland. Some date in the future.

A new concept in movie entertainment has just been launched in Ireland. 'The DVD Experience' allows you to rent the latest DVD blockbuster and hire a room equipped with massive LCD screens, the latest Dolby surround sound systems and huge leather recliners to really experience the movie in comfort.

Everyone dreams of having a dedicated movie room in their home but the cost of equpment puts it out of reach to all but the most affluent. Even those with the money for the equipment quite often are afraid to "crank up the volume" for fear of annoying the neighbour.

The DVD Experience room can be hired out for groups of up to 4 people at a time and the room rental includes refreshments in the price.

Speaking at the launch of Ireland's 1st DVD Experience store, MD Kinchtheblade said "We were looking to open a rental store when some market research we did suggested the rental formula wouldn't stack up. A contributor to an internet forum gave us the idea for the DVD Experience and after some further market research and much crunching of numbers we decided that this idea would work. Offering DVD and Room rentals together is a winning combination. Now you can watch a blockbuster in the ultimate movie environment. No heads in the way, control over volume, no whispering / giggling. It's a movie buffs dream!'

Oh, and in case you think a darkened, private room is a nice place for some nooky, don't even think about it, cameras installed in each room make sure that no one walks away with equipment or gets up to anything naughty. You have been warned!

======
ends.

segadreamcast · 09-01-2005 04:20PM

I'm not sure if the above was a joke but - tbh - I think that's a pretty good idea. People are prepared to pay premiums these days for pleasure...

€13 a head or so for cinema visits these days - multiply that by four = €52. If you were hiring out 5 rooms for 12 hours a day (assuming that you have a 2 hour turnover) at that price then you'd be making...well, more than your rent

.